Crude Oil Is Headed for $82… At Least

West Texas Intermediate Crude Oil has been pulling back from a high near 100 since early September. And it has been dragging the market lower with it lately. How low will it go? From the Fibonacci Speed lines in the chart below the support at 82.34 near the 200 day Simple Moving Average (SMA) seems to be a lock. But it gets really interesting if it breaks that level. The next

support lower is not found until about 65 from this perspective. There is support along the way at the previous low at 75.60 and much congestion between there and 65 so this is far from certain. Shudder to think what that means for the broad market if the correlation to Crude oil remains significant.

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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)

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